Credit Corp to acquire the assets of Radio Rentals from Thorn Group
Tuesday, 30 Nov 2021
Credit Corp Group Limited (Credit Corp) announces today that it has entered into a binding agreement to acquire the assets of the Radio Rentals appliance leasing business from ASX listed Thorn Group Limited (Thorn) for a total consideration of approximately $60 million.
The total consideration is subject to completion adjustments and will be funded from existing cash reserves. The transaction is expected to complete in December 2021.
Most of the consideration is attributable to the existing lease receivables book, which is expected to produce Credit Corp’s targeted investment return. In addition to the existing lease receivables, Credit Corp is acquiring the intellectual property, systems and supply chain arrangements of the, now online, Radio Rentals business. The acquisition of part of these assets is initially in the form of an economic participation.
Post-closing, the business operations will transition to Credit Corp. A number of Thorn staff will initially support the transition and thereafter many are expected to be offered employment with Credit Corp.
Mr. Thomas Beregi, CEO of Credit Corp, commented that Credit Corp had plans to commence operations in the online retail by instalment segment and the Radio Rentals acquisition provided an excellent platform from which to accelerate those ambitions. “Credit Corp provides the cheapest and most sustainable finance to the Australian credit impaired consumer market and our entry into this new segment will be consistent with that approach” he said.
2021 Annual General Meeting
Thursday, 04 Nov 2021
Credit Corp’s AGM was held as a virtual meeting today at 10am. We provided shareholders the ability to participate in the AGM by watching the AGM live online. The 2021 Annual General Meeting Results can be viewed here.
Announcement – Retirement of Non-Executive Director
Thursday, 04 Nov 2021
The Board of Credit Corp Group Limited announces that long-standing Non-Executive Director and former Chairman Mr. Don McLay will retire on 18 November 2021. This follows Don’s earlier decision to stand down as Chairman, having successfully led the Company to the resumption of its pre-COVID growth trajectory.
Don was Chairman of the Company for almost thirteen years, overseeing a period of continuous growth in earnings and shareholder wealth, with the Company’s market capitalisation increasing from approximately $20 million to more than $2 billion. His vision and drive saw Credit Corp diversify its operations, expanding into consumer lending and the United States. These strategic growth segments now represent 40 per cent of Credit Corp earnings.
Mr. Eric Dodd, Credit Corp Chairman, said Don’s strategic capability had helped position the Company for continued growth. “Don has overseen a long period of sustained growth and his contribution has laid the foundations for this to continue into the future. On behalf of his fellow Directors I thank Don for his contribution and wish him all the best in retirement” he said.